RONALD JARVI V BRIAN F MCCARTHY
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STATE OF MICHIGAN
COURT OF APPEALS
RONALD JARVI,
UNPUBLISHED
November 22, 1996
Plaintiff-Appellant,
v
No. 186188
LC No. 94-472318 CK
BRIAN F. MCCARTHY, GARY D. SUTELLA,
JAMES LABA and PAMELA LABA,
Defendants-Appellees.
Before: Wahls, P.J., and Fitzgerald and L.P. Borrello,* JJ.
PER CURIAM.
Plaintiff appeals as of right from the trial court’s order granting defendants’ motion for summary
disposition and to quiet title. We affirm.
This case involves the latest in a long series of cases involving the ownership of commercial
property located at 304 East Street in Rochester, Michigan. On May 1, 1975, plaintiff, defendants
Gary Sutella and Brian McCarthy, and three other individuals executed a land contract to purchase that
property from Michael and Ann Noble. The land contract required the six co-vendees to make a
monthly payment of $135 for four years, with the unpaid balance due as a balloon payment on May 1,
1979.
When the Nobles did not receive the balloon payment, they filed a lien against the property and
declared a default. On July 31, 1979, the Nobles’ attorney sent a notice of Intent to Forfeit (dated July
27, 1979) to the address provided on the land contract via certified mail, return receipt requested.
Plaintiff never notified the Nobles of a change of address and thus notice was sent to his last known
address, which was the address listed on the land contract. No response was received from any of the
co-vendees. The Nobles’ attorney sent a Notice of Forfeiture dated August 22, 1979, to the co
vendees, repeating the same mailing process. Again, there was no response.
* Circuit judge, sitting on the Court of Appeals by assignment.
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Plaintiff contends that on July 31, 1979, he was in the Oakland County Jail. On August 16,
1979, the Oakland Probate Court dismissed a petition to commit plaintiff to a mental health institution,
and released plaintiff to his father. Plaintiff contends that he was again in the Oakland County Jail from
August 23, 1979, to August 30, 1979.
On November 17, 1979, the Nobles filed a complaint in 52nd District Court against the co
vendees to recover possession of the property after forfeiture of the land contract. Defendants
McCarthy and Sutella were personally served with the complaint. Plaintiff and the other three co
vendees were never served with the complaint. Eventually, the district court entered a default judgment
against all the co-vendees except McCarthy and summary judgment as to McCarthy.
Sutella and McCarthy appealed the judgment to the Oakland Circuit Court. Under a consent
judgment entered on March 4, 1981, the circuit court ruled that McCarthy had redeemed the property
by paying the sum of $20,138.58 to the Nobles “subject only to . . . the rights of joint vendees under
the subject contract.” Upon entry of this judgment, McCarthy paid the Nobles and received in
exchange a warranty deed for the property. The deed was subject to the co-vendees’ rights in the
property.
On June 24, 1983, the Internal Revenue Service posted a Notice of Seizure on the property for
nonpayment of $24,140.34 in taxes owed by McCarthy. The tenant at the time, defendants James and
Pamela Laba, purchased the property for $36,500 at the tax sale. Subsequently, the Labas obtained
and recorded quit claim deeds from the Nobles to McCarthy and from McCarthy to them.
On December 27, 1989, Sutella executed a quit claim deed to plaintiff. The deed was
recorded on February 5, 1990. Also on February 5, 1990, plaintiff filed a motion to dismiss and to
vacate the consent judgment in Oakland Circuit Court on the grounds that he was neither properly
served with process nor present when the consent judgment was entered. The circuit court denied the
motion. This Court dismissed plaintiff’s appeal, and denied plaintiff’s motion for rehearing. After
plaintiff filed a petition to remove the action to United States District Court, that Court dismissed his
complaint with prejudice. The Sixth Circuit Court dismissed plaintiff’s appeal for lack of jurisdiction and
denied his petition for rehearing. In three separate dispositions, the U.S. Supreme Court denied a writ
of certiorari, rehearing, and a writ of mandamus and/or prohibition.
On March 14, 1994, plaintiff filed this complaint against the Labas alleging that he was the
absolute owner of the property and asking the court t clear title. The Labas filed a motion for
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summary disposition pursuant to MCR 2.116(C)(10). Plaintiff filed a counter-motion for summary
disposition pursuant to MCR 2.116(C)(9) and (10). The trial court granted the Labas’ motion,
dismissed plaintiff’s complaint, and denied plaintiff’s counter-motion.
Plaintiff argues several reasons why the trial court erred in granting the Labas’ motion for
summary disposition. We hold that summary disposition was proper although for different reasons than
those stated by the trial court. An action to quiet title is an equitable action in which a party in
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possession of property seeks to clear title against the whole world. Tray v Whitney, 35 Mich App
529, 533; 192 NW2d 628 (1971); MCL 600.2932(5); MSA 27A.2932(5).
MCL 600.5726; MSA 27A.5726 permits a land contract seller to recover the property
following a forfeiture, but only if the express terms of the contract give the vendor the right to declare
forfeiture as a result of a material breach of the contract. The contract at issue provided such a right. In
addition, the contract provided: “In all cases where a notice of forfeiture is relied upon by the seller to
terminate rights hereunder, service of notice shall be preceded by a notice of intent to forfeit the contract
served at least ten days prior thereto.” Similarly, MCL 600.5728; MSA 27A.5728 requires a written
notice of forfeiture to be served on the vendees and an opportunity to pay the required money before
possession of the property may be recovered under § 5726.
Service of the written notice of forfeiture is governed by MCL 600.5730; MSA 27A.5730,
which provides:
The notice of forfeiture provided for in § 5728 may be served by delivering it personally
to the vendee or person holding possession under him or by delivering it on the premises
to a member of his family or household or an employee, of suitable age and discretion,
with a request that it be delivered to the vendee or person holding possession under
him, or by sending it by first-class mail addressed to the last known address of the
vendee or the person holding under him.
The record indicates that the Nobles mailed the notice of intent to forfeit on July 31, 1979, to
plaintiff’s last known address by certified mail, return receipt requested. No response was received.
On August 22, 1979, the Nobles mailed the notice of forfeiture to plaintiff’s last known address by
certified mail, return receipt requested. Again, no response was received. Unless notified of a change
of address, the Nobles could rely upon the address given in the land contract. MCL 600.5730; MSA
27A.5730. Although plaintiff claims that he did not reside at that address, he does not dispute that he
never informed the Nobles of his change of address or that he was actually residing in Oak Park at the
time. The fact that plaintiff was incarcerated or hospitalized does not constitute “concealment” for
purposes of MCL 554.301; MSA 26.1171. Furthermore, the record indicates that plaintiff was never
judicially declared to be mentally incompetent. Accordingly, the trial court properly found that plaintiff
was served with the notice of intent to forfeit the land contract, as well as the notice of forfeiture.
Assuming arguendo that the trial court erred by relying on Rothenberg v Follman, 19 Mich
App 383, 387; 172 NW2d 845 (1969), the trial court’s order granting the Labas’ motion for summary
disposition was proper. An appellate court will not reverse a trial court’s decision if it reached the
correct result even if it was for the wrong reason. Paul v Bogle, 193 Mich App 479, 492; 484 NW2d
728 (1992).
Pursuant to the consent judgment entered in Oakland Circuit Court on March 4, 1981, no writ
of restitution was issued because McCarthy redeemed the property “subject only to . . . the rights of
any joint vendees under the subject [land] contract.” McCarthy’s interest in the property was seized by
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the IRS and sold to the Labas. In addition, the Labas recorded quit claim deeds from the Nobles to
McCarthy and from McCarthy to them. Thus, the question here is what rights the other co-vendees
retained under the land contract after McCarthy redeemed the property.
Any interest obtained by one cotenant in commonly owned property inures to the benefit of all.
See Scott v Baird, 145 Mich 116, 131; 108 NW 737 (1906). Here, McCarthy’s redemption of the
commonly owned property inured to the benefit of all the co-vendees. Thus, following that redemption,
plaintiff and the other co-vendees did not retain a statutory right of redemption since the property had
already been redeemed on their behalf.
Cotenants who want to take advantage of the purchase of an outstanding mortgage by another
cotenant must do equity by tendering or offering to contribute their proportionate shares of the amount
paid in purchase within a reasonable time. McArthur v Dumaw, 328 Mich 453, 461; 43 NW2d 934
(1950). We believe that equity insists that the same principle apply to interest in property that is
acquired as a result of a redemption by a cotenant under a land contract. Even though plaintiff and the
other co-vendees had an interest in the property after it was redeemed by McCarthy pursuant to the
consent judgment entered on March 4, 1981, they never tendered or offered to contribute their
proportionate shares of the amount paid by McCarthy before (or even after) the property was seized by
the IRS and sold to the Labas at a tax sale on July 29, 1983. Accordingly, any interest which the co
vendees retained at the time of the consent judgment had been extinguished by the time of the tax sale
because of a failure to tender or offer to contribute proportionate shares within a reasonable time.
McArthur, supra, pp 460-462; Reed v Reed, 122 Mich 77; 80 NW 996 (1899). The trial court
properly quieted title against all claims in the property and granted the Labas’ motion for summary
disposition.
Affirmed.
/s/ Myron H. Wahls
/s/ E. Thomas Fitzgerald
/s/ Leopold P. Borrello
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